This is from Patterson's 'Hot off the Press' round up for Day 2 of the RIU Explorers Conference in Perth:
Ausgold (AUC).
Austgold’s key project, Katanning (located 40km from Katanning and 300km from Perth) currently has a resource just under 800k ounces, with clear short term potential to grow to over 1m ounces. Whilst the grade tenor is relatively low (1.17g/t au), the deposit looks likely to have a relatively low strip ratio (c. 2-3:1), and the expected large scale (2-2.5mtpa) should see AISC come in in line or below current sector averages. There is clear short term exploration upside with the result removal of restrictions on drilling certain key targets, with near surface targets under the current Rifle Range. Resource update and scoping study are both planned for Q3CY18. Whilst very early days for this company, with a market cap of c.$30m, we feel the story is very interesting given the size of resource and potential production.
AUC Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
